StartUp Kansas
StartUp Kansas was launched in August of 2006 to provide funding for startups and expansions of existing businesses in rural and distressed Kansas communities in the form of matching grants and unsecured loans. Competitive rounds are held monthly and include the following key elements.
- Applications are submitted by NetWork Kansas partners on behalf of the entrepreneur. NetWork Kansas partners administer the loan and/or grant and provide a minimum of 40% matching funds. There are two components of the StartUp Kansas program that make it very innovative to the partner:
- There is no collateral required
- The StartUp Kansas loan matches the terms of the funding partner (years, interest rate, etc.)
- The StartUp Kansas Committee reviews and selects businesses based upon two primary factors.
- The business has the potential to be an economic driver. This is a business the committee thinks that if successful, it has the ability to grow and create additional jobs. Also, it may have the capability of generating wealth from outside of the community. (Manufacturer, etc.)
- The business provides a community benefit. It provides a benefit that the community perceives as either a necessity or enhances the community in another way. (Service businesses, restaurants, local newspapers, etc.) In these cases, the community benefit is weighted more heavily than job creation.
- A primary emphasis of StartUp Kansas is being a component of funding that is at the end of the entrepreneur’s capital food chain to ensure we do not replace private capital. Often, StartUp Kansas funds serve as the final portion of a loan that is needed by the business but cannot be collateralized. This is often a significant challenge for businesses in rural and distressed areas. In many cases, StartUp Kansas funds represent capital that would otherwise be unavailable to the business but is critical to the operation.
These elements ensure the StartUp Kansas program provides risk capital that assists entrepreneurs and existing businesses that, if successful, will provide economic and community benefits to rural communities across Kansas.
Who Can Apply and How?
Entrepreneurs and existing small businesses may only access StartUp Kansas funding by working with their local or regional non-profit business support providers who are NetWork Kansas partners. Examples are the regional foundations (listed on this website), Kansas Mainstreet organizations, city and county microloan programs, economic development agencies and other non-profit organizations that provide funding to for-profit entrepreneurs and small businesses in Kansas.
To find potential funding partners in your area, call us toll-free at 877-521-8600 or chat with us online through our live support chat.
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StartUp Kansas: Helping Real Kansas Companies
Countertop Trends is one business that StartUp Kansas funds have assisted. Read on to hear their story.
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News release
Startup Kansas Funding Supports Purchase of Cost-Saving Equipment
Countertop Trends (
www.countertoptrends.com), a family-owned business located in Gridley, Kansas, reported positive results from an investment in new equipment made with funds it received through StartUp Kansas. The company makes custom post-form laminate countertops for manufacturers, distributors, and home centers located throughout Iowa, Nebraska, Missouri, Kansas, Oklahoma, Arkansas, and Texas.
Fred Goertzen, Maintenance Supervisor at Countertop Trends, displays a custom etched panel made by the Gridley, Kansas-based manufacturer. The company purchased an industrial grinder to save money on waste disposal fees with matching loans from StartUp Kansas and Coffee County Economic Development. Since installing the grinder, the company saves $38K annually and achieved a return on investment in just 1.5 yrs. The cost-savings have helped the company weather the economic downturn and retain all 50 of their full-time employees.
In October 2008 Countertop Trends received a StartUp Kansas loan and grant, which were combined with a loan from Coffey County Economic Development. The funds allowed the company to purchase an industrial grinder that saves the company $38,000 annually in waste disposal fees.
"Before installing the grinder, we were taking three 40-yard dumpsters of waste to the landfill each week at an annual cost of $40,000," said Fred Goertzen, maintenance supervisor and engineer at Countertop Trends. Now the company sends just one dumpster each week to the landfill.
Now that the company is using an industrial grinder, they are diverting 550 tons of wood waste annually that would otherwise be destined for the town landfill. Tampco Shingles, a manufacturer in Lamar, Missouri, picks up the wood dust and recycles it into composite decking boards.
Jon Hotaling, Coffey County Economic Development Director, pointed out that the addition of the grinder is not only good for Countertop Trends' business and the environment; it is also good for the local community. "This is an excellent example of a symbiotic relationship," he said. "The county keeps having to expand the landfill, which is a costly and time-consuming process. Countertop Trends has significantly reduced the volume it sends to the landfill while recycling its waste into material that can be converted into another commercial product."
During Pollution Prevention Week (Sept. 20-26, 2010), Countertop Trends received an honorable mention from the Kansas Department of Health and Environment for its efforts in diverting wood waste from the landfill.
Maintenance Supervisor of Countertop Trends, Fred Goertzen, stands next to a sign proudly displaying the showroom hours at Countertop Trends.
In addition to helping the company weather the recession and have a positive impact on the environment, the project funneled nearly $90,000 to four different Kansas companies involved in the construction and installation of the grinder.
"If we didn't have access to the funding we received through StartUp Kansas and Coffey County Economic Development, we would not have been able to move ahead with the purchase and installation of the grinder," said Goertzen. "The economic downturn has affected our industry just as much as any other, so reducing operational costs was critical to keeping the business running without letting any of our 50 full-time employees go."
Counter Top Trends Video
Jamie Hofling Interviews Countertop Trends:
StartUp Kansas recipient: Flint Hills Music